Cash, Covid and China Weigh on Japan’s Parties Ahead of Election

(Bloomberg) -- Japanese Prime Minister Fumio Kishida faces the biggest test of his fledgling administration with an Oct. 31 election that could determine how long he stays on as premier.

He’s pledging his ruling Liberal Democratic Party will increase wages, provide massive support for a Covid-battered economy and stand with its allies to speak out about China’s alleged human rights abuses. His ruling coalition is expected to keep its majority in the powerful lower house of parliament, but if it’s with a markedly slimmer margin, he could find himself hobbled as leader.

The main opposition Constitutional Democratic Party said the LDP’s policies aren’t working and it’s time to start increasing taxes on the wealthy and large companies to strengthen the social safety net for all. The group is also trying to win over voters by proposing policies such as allowing same-sex marriage.

With the clock ticking down to the vote, here are the policies being backed by the LDP, its junior coalition partner Komeito and the main opposition CDP:

Economy

LDP:

• Provide “bolder” tax incentives for companies that raise wages and try to raise the public pay scale for nurses and caregivers for children and the elderly
• Promote economic security in supply chains and key technology including advanced chips

CDP:

• Halve the sales tax rate to 5% temporarily until the pandemic ends; abolish income tax for those who earn less than about 10 million yen ($88,000) a year
• Gradually raise the minimum hourly wage from 930 yen to 1,500 yen as a future target by publicly assisting small companies
• Strengthen wealth distribution by overhauling tax advantages for high income earners and large companies.

Komeito:

• Launch a new campaign of travel discounts to promote tourism as a post-Covid economic driver
• Give 100,000 yen cash handouts to families for each child up to high school age, given the prolonged impact of the pandemic on households with kids
• Proceed with the development of casinos as part of national tourism promotion

Energy/Environment

LDP: 

• Reach carbon neutrality by 2050 and aim to cut emissions of greenhouse gases by 46% by 2030 -- a target Secretary General Akira Amari said was based on restarting 30 nuclear reactors, most of which are currently offline
• Promote the use of so-called small modular reactors, which some party officials say are safer than existing nuclear reactors

CDP: 

• Based on the lessons of the Fukushima disaster, aim to reach carbon neutrality without relying on nuclear power
• Move steadily to decommission nuclear reactors
• Reduce greenhouse gas emissions by 55% in 2030, compared with 2013 levels and reach zero emissions as soon as possible, but at least by 2050

Komeito: 

• Provide long-term support for local governments and regional corporations that proactively introduce renewable energy
• Provide data to consumers on carbon emissions associated with goods and services, to promote a “green” lifestyle

Markets

• Kishida has distanced himself from an earlier proposal to increase capital gains tax on securities investments following a market backlash that helped send the Nikkei 225 Stock Average on its longest losing streak since 2009 at the start of this month
• Review quarterly earnings disclosure rules to encourage long-term research and talent investment

• Push for an increase in the capital gains tax
• Seek to review the law on agency workers to create a society where everyone who wishes can have full, regular employee status

Foreign Policy

• Work with the U.S. and other partners to defend the universal values of freedom, democracy, human rights and the rule of law and contribute to the stability of the global order
• Speak out on human rights issues involving the Uyghurs, Tibet, the Mongols and Hong Kong and call for responsible actions
• Bolster defense, including seeking the ability to stop a ballistic missile in another country’s territory

CDP: 

• Maintain a pacifist stance and seek an equal and healthy relationship with the U.S., while keeping the bilateral alliance as the cornerstone of a realistic diplomatic and security policy
• Begin dialogue to halt the planned move of a U.S. Marine base within Okinawa, as well as pushing for a review of the status of forces agreement with the U.S.

Komeito: 

• Work for a world without nuclear weapons and maintain the alliance with the U.S. that is the cornerstone of Japan’s diplomacy and security policy
• Work for stable overall ties with China, which is important for the region and the world
• Leader Natsuo Yamaguchi has said the public will not accept a disproportionate increase in defense spending

Social Issues

• No plans to allow same-sex marriage, or to allow married couples to retain separate family names

• Swiftly introduce a system to allow married couples to retain separate family names
• Seek to pass a law allowing same-sex marriage
• Aim for gender parity in all assemblies
• Review the law on rape and the age of consent

• Support allowing married couples to keep separate names and promote local government same-sex partnership initiatives
• Seek to make all rail stations with more than 3,000 users a day barrier-free by 2025

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